Article 14 - Independent Personal Services - International Taxation - Income Tax

Article 14 - Independent Personal Services As per OECD Model Tax Convention This article has been deleted from the OECED Model on 29-04-2022 on the basis of OECD Report 2000 on Issue Related to Article 14 of the OECD Model Tax Convention . The effect of deletion of article 14 is that income derived from Professional Services etc. is now dealt with as Business Profit (Article 7) under the OECD Model Tax Convention. As per UN Model Tax Convention Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances , when such income may also be taxed in the other Contracting State: (a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or (b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State. [ Para 1 of Article 14 ] Meaning of Professional Services The term professional services includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. [ Para 2 of Article 14 ] Note This Article covers independent activities involving professional skills rendered by individuals on a principal to principal basis. It excluded Industrial and Commercial Activities that are covered under the Article Business Profit. It is also exclude Professional services while in employment which are covered under the Article on Dependent Person Services. It is also not covered income from Fees from Technical Services .